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Kaiser Permanente selected to operate Maui hospitals

The board of Hawaii Health Systems Corp.'s Maui Region has chosen to enter negotiations with Oakland, Calif.-based Kaiser Permanente to manage the three state-owned hospitals in Maui County.

HHSC Maui Region is showing signs of financial distress. The region ended fiscal year 2014 with a $43.4 million operating loss, and that number is expected to grow to $46.3 million in FY 2015.

Both Kaiser and Hawaii Pacific Health in Honolulu expressed interest in a partnership with HHSC Maui Region, and on Tuesday the board chose Kaiser.

"We felt that the Kaiser proposal provided us with vision and strategy that would improve health services in the Maui region," Avery Chumbley, Maui Region board chair, told Pacific Business News. "We're looking for the development of the continuum for delivery of services, not just someone to run the hospital. The vision was much greater than that."

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